The bank asked banks to provide financing in a responsible manner to protect consumers, prevent over-indebtedness, and support economic stability.
According to the Emirates Today newspaper, the Central stressed the need for banks and financial institutions to fully implement these controls on all parts of the credit granting process..
These controls include licensed financial institutions to ensure that they obtain reliable and independent information on the financial position of the applicant.
Among the controls, licensed financial institutions must evaluate consumers’ related financial obligations, debts, capabilities, and needs before agreeing to provide them with a product, advice, or financing service..
According to the regulations, licensed financial institutions should not provide excessive credit that exceeds the amounts of credit requested by the consumer or are reasonable and can be repaid by the consumer, and be appropriate to his needs..
According to the controls, licensed financial institutions must apply appropriate standards to take due diligence measures and test effort, ability to pay, and the suitability of the credit product of the financing borrower..
According to the regulations, licensed financial institutions should not grant or offer any form of credit without the explicit and documented consent of the consumer, and licensed financial institutions should adopt reward programs to stimulate excessive and inappropriate credit levels..
The controls indicated that licensed financial institutions should investigate, when needed, about deviations and inappropriate activities in granting credit, and take corrective measures against them..
According to the regulations, licensed financial institutions must ensure that consumer credit information provided to external entities, including the Credit Information Agency, is accurate and timely.
The bank was revealed April 29th For the total number of citizens who have benefited from the Citizen Loan Program By the end of last year, there were 4470 citizens of bad debts.
The Central Bank stated that the program continued to support citizens who face excessive debt problems, with the aim of easing the burden of debt accumulation on them, in addition to helping them manage debt settlement.